Why is Bitcoin sometimes correlated to the stock market? | Headlines | News | CoinMarketCap
05/27/2024 14:15
Understanding the stock market is crucial for those interested in the financial ecosystem, as it plays a pivotal role in the world economy. The …
The Block Crypto Newsa minute ago
Published on May 27, 2024 07:08 GMT+00:00edited on May 27, 2024 07:09 GMT+00:00
Understanding the stock market is crucial for those interested in the financial ecosystem, as it plays a pivotal role in the world economy.
The stock market is essentially a collection of exchanges and other venues where publicly-held companies' shares are bought, sold, and issued. The prices of stocks are influenced by various factors, including supply and demand dynamics, investor sentiment, economic conditions, monetary policy, geopolitics and regulatory changes. These elements can cause fluctuations in stock prices — reflecting the health and financial stability of the companies listed and broader economic trends.
The supply and demand for stocks are fundamental drivers of price movements. The price increases when more people want to buy a stock (demand) than sell it …